Ch. 2

LAWS OF MARYLAND

Defined terms: "Admissions and amusement tax" § 1-101

"Governmental unit" § 13-101

"Motor fuel tax" § 1-101 "Person" § 1-101

"Sales and use tax" § 1-101

13-705. FRIVOLOUS INCOME TAX RETURN.

(A)  PENALTY.

THE COMPTROLLER SHALL ASSESS A PENALTY NOT EXCEEDING $500
IF:

(1)  AN INDIVIDUAL, AS DEFINED UNDER § 10-101 OF THIS
ARTICLE, FILES WHAT PURPORTS TO BE AN INCOME TAX RETURN, BUT
WHICH:

(I)  DOES NOT CONTAIN INFORMATION ON WHICH THE
SUBSTANTIAL CORRECTNESS OF THE TAX MAY BE DETERMINED; OR

(II)  CONTAINS INFORMATION THAT, ON ITS FACE,
INDICATES THE TAX REPORTED ON THE RETURN IS SUBSTANTIALLY
INCORRECT; AND

(2)  THE CONDUCT OF THE INDIVIDUAL IS DUE TO:

(I)  A DESIRE, APPARENT ON THE FACE OF THE
RETURN, TO DELAY OR IMPEDE THE ADMINISTRATION OF THE PROVISIONS
OF TITLE 10; OR

(II)  A POSITION THAT IS FRIVOLOUS BECAUSE THE
POSITION:

1.  HAS NO BASIS IN LAW OR FACT;

2.   IS PATENTLY UNLAWFUL; AND

3.  DOES NOT INVOLVE A LEGITIMATE DISPUTE
OR REFLECT AN INADVERTENT MATHEMATICAL OR CLERICAL ERROR.

(B)  ADDITIONAL TO OTHER PENALTY.

THE PENALTY UNDER SUBSECTION (A) OF THIS SECTION IS IN
ADDITION TO ANY PENALTY ASSESSED UNDER § 13-701 OF THIS SUBTITLE.

REVISOR'S NOTE: This section is new language derived
without substantive change from former Art. 81, §
318(b) and (c).

Former Art. 81, § 318(d), which required the
Comptroller to apply the administrative and judicial
interpretations of the federal income tax law to the
penalty under this section, is deleted as unnecessary
in light of a similar provision in § 10-107 of this
article.

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